• 29 nurseries and nursery chains fell into insolvency last year, up from 16 in 2014/15
• High staff-child ratio results in spiralling costs for nurseries
The number of nurseries falling into insolvency in England and Wales has almost doubled in the last year, as 29 nurseries became insolvent compared to just 16 during 2014/15, an increase of 81%*, says Moore Stephens, the top ten accountancy firm.
Moore Stephens adds that the introduction of the National Living Wage** has increased staff costs, which has piled further pressure onto nurseries.
Moore Stephens says that whilst many nurseries would prefer to keep childcare fees low, the financial strain they are under has forced some to raise fees which risks pricing parents out of the market.